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A Different Type of Lifestyle Creep
Lifestyle creep is the term used when your spending habits get out of control from a recent increase in income. Ideally, you would maintain your current lifestyle costs and save the rest. But what happens when inflation eats into your budget? You’re forced to save less, diminishing your potential for accumulated wealth over your lifetime. This is a different type of lifestyle creep where your lifestyle hasn’t changed at all.
I’m a victim of inflation and so are you. This last week, I spent money like usual but the numbers aren’t adding up like they used to. I’ll admit that I can be an entertainment seeker when it comes to my monthly budget. I love using my dollars to keep me busy with movies, food, and making sure my friends are happy.
Two weeks ago I resurfaced my article from last year about the logistics of inflation and we took a look at supply and demand. Here we’re going to take a look at more actionable steps I’m taking to combat inflation.
Spending Quick Tips
Use coupons when possible
Cut (or consolidate) subscription costs
Increase income through side gigs and selling home goods
Vehicle Quick Tips
Use cruise control
Don’t get gas on or near weekends and opt for the week
Avoid vehicle idling
Credit Card Tips
Use them responsibly and limit spending
Seek to increase your credit limit at least once a month
Be smart on when to take out a new card
The largest detriment to dealing with inflation is continuing to spend like nothing’s changed. In fact, everything is changing little by little every day. The biggest lifestyle tip is to avoid keeping up with the Joneses. If you’re consistently feeling inadequate by what others have, you’ll never be happy. Wealth is stealth.
Since day one on this blog, I’ve harked that finance is about personal psychology and your spending is a reflection of who you are. This week your assignment is to reflect on the role money plays in your life.
Next week, we’re chatting about my recent credit card application experience and what that means for my credit score.
Have a great week ahead of you,
Jordan
💰Adjusting Your Lifestyle for Inflation💰
Great read! I would also suggest creating an emergency fund given the current economic uncertainty.